Salazar v. McDonald's Corp., No. 17-15673 (9th Cir. 2019)Annotate this Case
McDonald's employees filed a class action alleging that they were denied overtime premiums, meal and rest breaks, and other benefits in violation of the California Labor Code. Plaintiff class members worked at franchises in the Bay Area operated by the Haynes Family Limited Partnership.
The Ninth Circuit affirmed the district court's grant of summary judgment to McDonald's, holding that there was no evidence that McDonald's, as the franchisor, was a joint employer. The panel held that the district court properly determined that McDonald's was not an employer under the "control" definition, which requires control over the wages, hours, or working conditions. The panel also held that the district court correctly concluded that McDonald's did not meet the "suffer or permit" definition of employer. Finally, the panel held that the district court correctly concluded that McDonald's was not an employer under the common law definition of "employer." Furthermore, the panel held that McDonald's could not be held liable under an ostensible-agency theory; plaintiffs met neither the damages nor the duty elements to prove negligence; and the panel declined to address the merits of the remaining claims.